The Zimbabwe Revenue Authority (ZIMRA) has issued a public notice on 6 February 2024, that advises all taxpayers and the public that a new PAYE Return has been introduced with effect from 1 January 2024.
The new PAYE return which replaces the Form P2, is already showing on Pending Returns in the Self-Service Portal for all taxpayers who have an existing PAYE Tax Type.
This PAYE Return has provision for both US$ and ZWL$ PAYE declarations. The due date of the January 2024 PAYE return and payment is the 10th of February 2024.
This new return makes the submission of the annual ITF16 not relevant, starting from the 2024 tax year. However, ITF16s for year 2023 and prior years are still required to be submitted.
Please take note of the following:
a. The field for Employee TIN is not mandatory for now, until further notice.
b. The tax computations in this return follows the Final Deduction System (FDS).
c. TaRMS is being enhanced to allow uploading of the PAYE return for the benefit of Employers with a large number of employees. ZIMRA will be notify taxpayers once this facility is implemented.
d. The Return computes the tax due once all the relevant field values are entered.
e. Where Employee earnings are in US$, all the declarations on the Return should be made in US$, and the US$ PAYE Tables are applied by the TaRMS system until the end of the tax year.
f. The new PAYE Return caters for cases where Employee earnings are in both US$ and ZWL$, and the US$ PAYE Table will apply until the end of the tax year.
g. The Return also covers instances where Employee earnings are only in ZWL$ and ZWL$ PAYE Table apply.
h. Taxpayers with the following applicable tax credits will require to have employee TIN as the TaRMS system will automatically calculate the credits from the Employee TIN details stored in TaRMS:
- Elderly Person’s Credit
- Blind Person’s Credit
- Disability Person’s Credit
More details on system updates for the new PAYE return and the upload format will be shared soon!